Signs of a Further Correction in HYPE Price as Bearish Momentum Prevails

Key insights:

• The HYPE coin has dipped below the critical $37 support line, indicating weakening buying pressure and more bearish power.
• Fibonacci ratios imply that the $32.44 and $29.5 marks can be considered significant demand points.
• Negative readings from RSI and CMF confirm weakening momentum and capital flow, validating the prevailing bearish sentiment.

Breaking Below Crucial Support Level

The price action of Hyperliquid’s HYPE is now trading below the crucial support at $37, indicating a fundamental change in the price structure in the short term.

The support area was seen as a solid floor, having been tested on multiple occasions and bouncing back each time. However, the current breakdown shows that buying interest has diminished significantly.

Moreover, previous attempts to make a push towards the local resistance near $43.7 have not been successful, demonstrating the lack of ability of bulls to keep momentum going.

Another interesting thing to note is the breakout above $40, which took place in late March, was short-lived, as sellers took advantage of this situation.

Market Weakness in Wider Crypto Sector

The fall in the HYPE price is not an isolated incident. In the wider crypto market sector, Bitcoin, along with other cryptocurrencies, suffered declines during the same period.

The market weakness witnessed by the wider crypto sector has led to a decline in investor sentiment, which has made it difficult for HYPE to attempt any recovery moves. This has kept the bullish pressure limited, leading to further price weakness over the last two weeks.

Although there have been some negative developments in the short term, the overall picture remains positive in the long term. Earlier this year, in February 2025, HYPE reached almost $60 but declined rapidly to reach $20. Subsequently, the rise up to $43.7 was a part of a recovery phase.

Thus, the latest fall in HYPE prices can be seen as a retracement from its previous gains.

Levels Highlight Possible Drawdown

Fibonacci retracement levels through technical analysis point towards the possibility of additional drawdown in HYPE. The two levels of $32.44 and $29.5 appear significant, acting as areas for potential buying from traders.

The levels lie inside an established demand zone, which is crucial for the future movement of the crypto asset. However, trading activity currently reveals that there are no aggressive accumulations happening in these levels.

Bearishness Validated by Momentum Indicators

The momentum indicators also confirm the bearish scenario. In this regard, the RSI indicator has breached the 50 neutral level, pointing to an increase in selling activity and a slowdown in buying power.

Moreover, the CMF indicator continues to record negative readings, trading close to -0.15. This indicates that the capital is being withdrawn from the asset.

In terms of the smaller timeframes, especially the 4-hour timeframe, HYPE keeps forming lower highs, indicating the continuation of the bearish scenario. The rejection at the $42 mark in late March has formed a key resistance level that the bulls have failed to surpass.

The Resistance Level Determines the Chance for Reverse

If the stock is going to make a full recovery, HYPE needs to get past the resistance level at $41.59. Crossing this level will demonstrate new buying power and can be considered the start of the return to the $43.7 level.

Prior to that happening, the trend will remain bearish. The market’s dynamics will show that the market still approaches trading with caution and monitors vital areas of supply and demand.

In the short term, the demand zone from $29.5 to $32.5 is essential to pay attention to. If this zone is successfully maintained by buyers, there are good chances for a reversal to happen; otherwise, there might be even lower prices.

Cautious Outlook Continues

Generally speaking, the current trading prices of HYPE show that the market is under stress. The weak momentum, falling indicators, and uncertainties in the market environment are exerting significant pressure on the price of the cryptocurrency.

Even though the long-term chart shows possibilities for a recovery, it appears that the near-future prospects for HYPE remain bearish until it manages to reclaim the key resistance areas.